Question - The Miller Company earned $123,000 of revenue on account during Year 2. There was no beginning balance in the accounts receivable and allowance accounts. During Year 2, Miller collected $82,000 of cash from its receivables accounts. The company estimates that it will be unable to collect 3% of its sales on account.
The amount of uncollectible accounts expense recognized on the Year 2 income statement was:
$2,460.
$3,690.
$41,000.
$1,230.